Answer:
b.$5,912.50
Explanation:
The computation of the operating income is shown below:
= Sales - Direct materials cost - Direct labor cost - Manufacturing overhead cost - Total selling and administrative expense
where,
Sales = Number of units × selling price per unit
= 825 units × $74.80
= $61,710
Direct materials cost = Number of units × Direct materials per unit
= 825 units × $13
= $10,725
Direct labor cost = Number of units × Direct labor per unit
= 825 units × $13
= $7,260
Manufacturing overhead cost = Number of units × Manufacturing overhead per unit
= 825 units × $16.50
= $13,612.50
And, the Total selling and administrative expense is $24,200
Now put these values to the above formula
So, the value would equal to
= $61,710 - $10,725 - $7,260 - $13,612.50 - $24,200
= $5,912.50
